Satellogic Plans To Have Most Inexpensive Satellite Resolution Imagery: What Investors Should Know About SPAC Merger

A satellite company working to create searchable earth and remap the globe is going public with a SPAC merger announced Tuesday.

The SPAC Deal: Satellogic announced a SPAC merger with CF Acquisition Corp V CFV valuing the company at a pro forma enterprise value of $850 million.

The merger is expected to help the company finance the scaling of its constellation and goal of more than 300 satellites in orbit by 2025.

Satellogic will trade with ticker "SATL" on the Nasdaq after the merger. Public CFV shareholders will own 22% of the new company.

About Satellogic: With 17 commercial satellites in orbit and a vertically integrated platform, Satellogic is one of several companies working to provide resolution imagery and remapping capabilities to customers.

The company’s goal is to provide a “live catalog of every square meter of Earth daily.” The company says its patented camera design can capture 10x more data from a single satellite than any competing small Earth observation satellite.

Each of the company’s satellites collects 300,000 sq km of data daily, which the company says is more than any competitor.

Related Link: 5 SPACs To Watch In The Second Half Of 2021 

Growth Ahead: Satellogic lists a total addressable market of $140 billion in its presentation.

The company is targeting several of the largest global issues including food, water and energy supplies, climate change, immigration and monitoring natural disaster impacts.

The company’s vertical integration is expected to help the company scale and see significant cost advantages along the way. Competitors use third-party assemblers and buy components elsewhere.

One of the recent deals signed by Satellogic is a multiple-launch agreement with SpaceX. The deal will help Satellogic reach its goal of more than 300 satellites by 2025. With the full launch of 300 satellites, Satellogic will be the only company capable of remapping the world at resolutions up to 30 centimeters.

Satellogic lists a cost per km of $0.46 compared to competitors like Maxar Technologies Inc MAXR at $56.07 and BlackSky, which is merging with Osprey Technology Acquisition Corp SFTW, at $52.41.

Financials: Satellogic is projecting revenue to hit $7 million for fiscal 2021 and $47 million for fiscal 2022. The company projects positive EBITDA in fiscal 2023 on revenue of $132 million.

Satellogic’s backlog is $38 million with a listed total of $2.1 billion in pipeline opportunities.

The company is projecting to have 37 satellites in orbit in fiscal 2022 and 111 in fiscal 2023.

CFV Price Action: Shares of CFV are up 1.65% to $9.88 on Tuesday at publication.

Photo: Giza Pyramids, Egypt, Satellogic (c) Multispectral Image